[Episode 6] Games with Bitcoin - Mastery of the Rules -

The 6th edition of "System Trading for Top Intelligence" is a game on Bitcoin - Mastery of the Rules -.

The main site isInitiative - Future Thinking System TraderThis covers a broader range of events, but in "System Trading for Top Intelligence" we will delve deeper into the themes, so please bear with us.

【Know the Rules】

You should understand the conventions and rules within the market quite rigorously. There are many rules in the market, and those who truly know them aresurprisingly few. Some with rich trading experience may think they know the details. But that is not the case. After several years of trading and achieving a certain level of success, rechecking the trading rules often reveals new findings. Knowing the rules helps prevent losses in advance and can be a source of advantage. I will repeat this:「Very few people fully understand all the rules.」

Now, let me share a more interesting point. Those providing the market may not fully understand all the rules either. For example, the Tokyo Stock Exchange's trading rules have a long history, and though they may feel nearly perfect, they were ultimately built up over time. If there is any unfairness, it is improved so the market can exist as it is today. Bitcoin's trading rules, being a new market, are determined by referring to existing markets.

Even if it is an improvised trading-like game, with only simple rule-setting, the market can still function. Among these, outcomes of wins and losses are clearly divided. First, those who win in an immature market are those who fully understand the rules. Those who do not even know the rules are unfortunately prey. By mastering the rules and understanding how others will move or where the rule gaps lie, you can become invincible. Even if the制度 is a bit flawed, “the market exists” is a fact, andthe pattern of losing for everyone without exception is due to a lack of rule awareness, and the rest is distributed by luck.

Even if the system is somewhat flawed, “the market exists” → normal buying and selling works so you might think the rules are perfect. → Because you can trade normally, you might think you know the rules.

This describes most people. Actually, because they do not know the rules, they miss opportunities. The portions missed out are then distributed among those who truly understand.

【Try It】】

Reading the rules alone does not guarantee true understanding. You realize much only after trying. Of course, you can also observe other participants’ movements within the rules, which makes you more knowledgeable about the market. If that happens, your own misses become extremely rare, and you can even become the one who benefits from others’ misses. Knowing the rules has no downside.

【Bitcoin Rules】

You should also know the rules for Bitcoin. There exists a so-called Rich List of Bitcoin holders. This traces addresses of large holders, and their buying and selling records are disclosed. This is information not typically available for other financial instruments, a truly beneficial product of decentralization. Besides, since price can differ by cryptocurrency exchange, Bitcoin itself can be deposited and withdrawn, meaning there is not a single price, but various prices that can be traded directly. FX also has price differences, but those are minor and involve bank-mediated deposits and withdrawals, which incur costs and time.

Different fees correspond to maker and taker fees in the market. If you can adapt based on the situation, you can cut costs and outrun other traders. Also, for example, Bitmex has information such as swaps occurring every eight hours. By carefully reading the rules, you can gain mountains of hints. That is the real thrill of trading.

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Top Intelligence is a term derived from top athletes, meaning athletes who use their brains. Trading, like athletes, requires practice and mental imagery. In real trading you never know what will happen, but results are demanded just like athletes. And you train continuously for that. There are times when things don't go well, but you don’t give up. With an indomitable spirit (resilience), you aim for the peak.

So far, when people spoke of elites and intelligence, fragility and delicacy were emphasized, but that is not the case here. We aim to develop what you might call mixed-breed strength and charge ahead. Let us, together with readers, envision a top intelligence who is incredibly tough and resilient, not a typical top athlete.

Regarding strategy, we try to be as open as possible and incorporate open-source thinking. Through output and idea refinement, we can advance each other’s investment techniques.